I-3 - Taxation Act

Section 737.18.17.6 Disposition versions

2019-06-19

737.18.17.6. The amount to which the first paragraph of section 737.18.17.5 refers in respect of a corporation for a taxation year is equal, subject to paragraph a of section 737.18.17.7 or 737.18.17.7.1, as the case may be, to the aggregate of the following amounts that is multiplied, if the corporation has an establishment situated outside Québec, by the reciprocal of the proportion that its business carried on in Québec is of the aggregate of its business carried on in Canada or in Québec and elsewhere, as determined under subsection 2 of section 771: 

(a)  the product obtained by multiplying the proportion that is the reciprocal of the basic rate determined for the year in respect of the corporation under section 771.0.2.3.1 by the lesser of the aggregate of all amounts each of which is the corporation’s tax exemption amount for the year in respect of a large investment project of the corporation, or of a partnership of which it is a member, that is referred to in the first paragraph of section 737.18.17.5 and the amount that is determined in its respect for the year under subparagraph ii of subparagraph d of the fifth paragraph; and

(b)  the product obtained by multiplying the proportion that is the reciprocal of the rate determined in respect of the corporation for the year in accordance with the sixth paragraph by the amount by which the aggregate of all amounts each of which is the corporation’s tax exemption amount for the year in respect of a large investment project of the corporation, or of a partnership of which it is a member, that is referred to in the first paragraph of section 737.18.17.5 exceeds the amount that is determined in its respect for the year under subparagraph ii of subparagraph d of the fifth paragraph.

For the purposes of this section, a corporation’s tax exemption amount for a taxation year in respect of a large investment project of the corporation, or of a partnership of which it is a member, is equal to the lesser of the amount that is determined under the fourth paragraph, for the year, in relation to the large investment project and the balance of the corporation’s tax assistance limit for the year in respect of the project.

The balance of a corporation’s tax assistance limit, for a particular taxation year, in respect of a large investment project, is equal to

(a)  in the case of a large investment project of the corporation, the amount by which the corporation’s tax assistance limit for the particular year, in relation to the project, exceeds the aggregate of 

i.  the aggregate of all amounts each of which is, for a preceding taxation year, in relation to the large investment project, equal to the amount determined by the formula

A × B × C,

ii.  the aggregate of all amounts each of which is the corporation’s contribution exemption amount, for the particular taxation year or a preceding taxation year, in respect of the large investment project, determined in accordance with the second paragraph of section 34.1.0.3 of the Act respecting the Régie de l’assurance maladie du Québec (chapter R-5), and

iii.  where, at any time in the particular taxation year, the corporation transfers its recognized business in relation to the large investment project to another corporation or a partnership, the amount that was transferred to the other corporation or the partnership pursuant to the agreement referred to in section 737.18.17.12 in respect of the transfer; or

iv.  in the case of a deemed large investment project within the meaning of section 737.18.17.1.1, the aggregate of the following amounts, if any:

(1)  the amount determined by the following formula for the taxation year that includes the last day of the tax-free period in respect of the first large investment project and ends after that day, unless the balance of the corporation’s tax assistance limit for that year, in respect of the deemed large investment project, determined without reference to this subparagraph, is less than or equal to the corporation’s tax assistance limit in relation to the second large investment project:

F – [(F × H) + (G × I)], and

(2)  the amount determined by the following formula for the taxation year that follows the taxation year that includes the last day of the tax-free period in respect of the first large investment project, unless the balance of the corporation’s tax assistance limit for that year, in respect of the deemed large investment project, determined without reference to this subparagraph, is less than or equal to the corporation’s tax assistance limit in relation to the second large investment project:

F – G; or

(b)  in the case of a large investment project of a partnership of which the corporation is a member, the amount by which the corporation’s tax assistance limit for the particular year, in relation to the large investment project, exceeds the aggregate of all amounts each of which is, for a preceding taxation year, in relation to the project, equal to the amount determined by the formula 

A × B × C.

The amount to which the second paragraph refers, for a taxation year of the corporation, in relation to a large investment project, is determined by the formula

A × D × E.

In the formulas in the third and fourth paragraphs,

(a)  A is 1, unless the corporation has an establishment situated outside Québec for the taxation year, in which case it is the proportion that the corporation’s business carried on in Québec is of the aggregate of its business carried on in Canada or in Québec and elsewhere, as determined under subsection 2 of section 771 for the year;

(b)  B is, subject to paragraph b of sections 737.18.17.7 and 737.18.17.7.1, the aggregate of

i.  the product obtained by multiplying the rate determined in respect of the corporation for the year in accordance with the sixth paragraph by the amount by which the amount that would be determined in respect of the corporation for the year under section 771.2.1.2 if no reference were made to section 771.2.5.1 and if, for the purposes of paragraph b of section 771.2.1.2, its taxable income for the year were computed without reference to section 737.18.17.5, exceeds the amount determined in its respect for the year under section 771.2.1.2, and

ii.  the product obtained by multiplying the basic rate determined for the year in respect of the corporation under section 771.0.2.3.1 by the amount by which the amount that is deducted by the corporation in computing its taxable income for the year under section 737.18.17.5 exceeds the excess amount determined under subparagraph i;

(c)  C is the proportion that the corporation’s tax exemption amount for the year in respect of the large investment project is of the aggregate of all amounts each of which is the corporation’s tax exemption amount for the year in respect of a large investment project of the corporation, or of a partnership of which it is a member, that is referred to in the first paragraph of section 737.18.17.5 for the year;

(d)  D is, subject to paragraph b of sections 737.18.17.7 and 737.18.17.7.1, the aggregate of

i.  the product obtained by multiplying the rate determined in respect of the corporation for the year in accordance with the sixth paragraph by the amount by which the amount that would be determined in respect of the corporation for the year under section 771.2.1.2 if no reference were made to section 771.2.5.1 and if, for the purposes of paragraph b of section 771.2.1.2, its taxable income for the year were computed without reference to section 737.18.17.5, exceeds the amount that would be determined in its respect for the year under section 771.2.1.2 if the corporation were to deduct, in computing its taxable income, the amount that, but for this section, would be determined under section 737.18.17.5, and

ii.  the product obtained by multiplying the basic rate determined for the year in respect of the corporation under section 771.0.2.3.1 by the amount by which the amount that could be deducted in computing the corporation’s taxable income for the year under section 737.18.17.5 if no reference were made to this section exceeds the excess amount determined under subparagraph i; and

(e)  E is

i.  in the case of a large investment project of the corporation, the proportion that the amount that A would be in the formula in subparagraph a of the first paragraph of section 737.18.17.5, for the taxation year, in respect of the corporation, if the corporation’s income referred to in subparagraph a of the second paragraph of that section were derived only from its eligible activities, in relation to the large investment project, is of the total of the amount that A is in that formula for the year, in respect of the corporation, and the aggregate of all amounts each of which is the corporation’s share of the amount that D is in the formula in subparagraph b of that first paragraph for the fiscal period of a partnership of which the corporation is a member that ends in the year, or

ii.  in the case of a large investment project of a partnership of which the corporation is a member, the proportion that the corporation’s share of the amount that D would be in the formula in subparagraph b of the first paragraph of section 737.18.17.5, for the fiscal period of the partnership that ends in the taxation year, if the partnership’s income referred to in subparagraph d of the second paragraph of that section were derived only from its eligible activities, in relation to the large investment project, is of the total of the amount that A is in the formula in subparagraph a of that first paragraph for the year, in respect of the corporation, and the aggregate of all amounts each of which is the corporation’s share of the amount that D is for the fiscal period of a partnership of which the corporation is a member that ends in the year;

(f)  F is the balance of the corporation’s tax assistance limit for the taxation year referred to in subparagraph 1 or 2 of subparagraph iv of subparagraph a of the third paragraph, in respect of the deemed large investment project, determined without reference to that subparagraph 1 or 2, as the case may be;

(g)  G is the corporation’s tax assistance limit in relation to the second large investment project;

(h)  H is the proportion that the number of days in the part of the year referred to in subparagraph 1 of subparagraph iv of subparagraph a of the third paragraph that ends on the last day of the tax-free period in respect of the first large investment project is of the number of days in that year; and

(i)  I is the proportion that the number of days in the year referred to in subparagraph 1 of subparagraph iv of subparagraph a of the third paragraph that follow the last day of the tax-free period in respect of the first large investment project is of the number of days in that year.

The rate to which subparagraph b of the first paragraph and subparagraph i of subparagraphs b and d of the fifth paragraph refer in respect of a corporation for a taxation year is equal to the amount by which the basic rate determined for the year in respect of the corporation under section 771.0.2.3.1 exceeds the percentage determined for the year in its respect under subparagraph c of the first paragraph of section 771.0.2.4.

For the purpose of determining the amount referred to in subparagraph i of subparagraph a of the third paragraph or in subparagraph b of that paragraph for any preceding taxation year for which section 733.0.5.1 applies to the corporation, subparagraph b of the fifth paragraph is to be read as if

(a)  the amount that is deducted by the corporation in computing its taxable income for the year under section 737.18.17.5 were increased by the amount by which its non-capital loss for the year exceeds the amount that would be that loss if it were determined without reference to section 733.0.5.1; and

(b)  the corporation’s taxable income for the year, determined without reference to section 737.18.17.5, were equal to the amount that, but for this section, would be determined in its respect for the year under section 737.18.17.5.

For the purposes of subparagraph e of the fifth paragraph, the corporation’s share of an amount for a partnership’s fiscal period is equal to the agreed proportion of that amount in respect of the corporation for the partnership’s fiscal period.

2015, c. 21, s. 260; 2017, c. 1, s. 182; 2019, c. 14, s. 200.

2017-02-08

737.18.17.6. The amount to which the first paragraph of section 737.18.17.5 refers in respect of a corporation for a taxation year is equal, subject to paragraph a of sections 737.18.17.7 and 737.18.17.7.1, to the aggregate of the following amounts that is multiplied, if the corporation has an establishment situated outside Québec, by the reciprocal of the proportion that its business carried on in Québec is of the aggregate of its business carried on in Canada or in Québec and elsewhere, as determined under subsection 2 of section 771:

(a)  the product obtained by multiplying the proportion that is the reciprocal of the basic rate determined for the year in respect of the corporation under section 771.0.2.3.1 by the lesser of the aggregate of all amounts each of which is the corporation’s tax exemption amount for the year in respect of a large investment project of the corporation, or of a partnership of which it is a member, that is referred to in the first paragraph of section 737.18.17.5 and the amount that is determined in its respect for the year under subparagraph ii of subparagraph d of the fifth paragraph; and

(b)  100/8 of the amount by which the aggregate of all amounts each of which is the corporation’s tax exemption amount for the year in respect of a large investment project of the corporation, or of a partnership of which it is a member, that is referred to in the first paragraph of section 737.18.17.5 exceeds the amount that is determined in its respect for the year under subparagraph ii of subparagraph d of the fifth paragraph.

For the purposes of this section, a corporation’s tax exemption amount for a taxation year in respect of a large investment project of the corporation, or of a partnership of which it is a member, is equal to the lesser of the amount that is determined under the fourth paragraph, for the year, in relation to the large investment project and the balance of the corporation’s tax assistance limit for the year in respect of the project.

The balance of a corporation’s tax assistance limit, for a particular taxation year, in respect of a large investment project, is equal to

(a)  in the case of a large investment project of the corporation, the amount by which the corporation’s tax assistance limit, in relation to the project, determined in accordance with section 737.18.17.8, exceeds the aggregate of

i.  the aggregate of all amounts each of which is, for a preceding taxation year, in relation to the large investment project, equal to the amount determined by the formula

A × B × C,

ii.  the aggregate of all amounts each of which is the corporation’s contribution exemption amount, for the particular taxation year or a preceding taxation year, in respect of the large investment project, determined in accordance with the second paragraph of section 34.1.0.3 of the Act respecting the Régie de l’assurance maladie du Québec (chapter R-5), and

iii.  where, at any time in the particular taxation year, the corporation transfers its recognized business in relation to the large investment project to another corporation or a partnership, the amount that was transferred to the other corporation or the partnership pursuant to the agreement referred to in section 737.18.17.12 in respect of the transfer; or

(b)  in the case of a large investment project of a partnership of which the corporation is a member, the amount by which the corporation’s tax assistance limit for the particular year, in relation to the large investment project, determined in accordance with section 737.18.17.9 exceeds the aggregate of all amounts each of which is, for a preceding taxation year, in relation to the project, equal to the amount determined by the formula

A × B × C.

The amount to which the second paragraph refers, for a taxation year of the corporation, in relation to a large investment project, is determined by the formula

A × D × E.

In the formulas in the third and fourth paragraphs,

(a)  A is 1, unless the corporation has an establishment situated outside Québec for the taxation year, in which case it is the proportion that the corporation’s business carried on in Québec is of the aggregate of its business carried on in Canada or in Québec and elsewhere, as determined under subsection 2 of section 771 for the year;

(b)  B is, subject to paragraph b of sections 737.18.17.7 and 737.18.17.7.1, the aggregate of

i.  8% of the amount by which the amount that would be determined in respect of the corporation for the year under section 771.2.1.2 if no reference were made to section 771.2.5.1 and, for the purposes of paragraph b of section 771.2.1.2, its taxable income for the year were computed without reference to section 737.18.17.5, exceeds the amount determined in its respect for the year under section 771.2.1.2, and

ii.  the product obtained by multiplying the basic rate determined for the year in respect of the corporation under section 771.0.2.3.1 by the amount by which the amount that is deducted by the corporation in computing its taxable income for the year under section 737.18.17.5 exceeds the excess amount determined under subparagraph i;

(c)  C is the proportion that the corporation’s tax exemption amount for the year in respect of the large investment project is of the aggregate of all amounts each of which is the corporation’s tax exemption amount for the year in respect of a large investment project of the corporation, or of a partnership of which it is a member, that is referred to in the first paragraph of section 737.18.17.5 for the year;

(d)  D is, subject to paragraph b of sections 737.18.17.7 and 737.18.17.7.1, the aggregate of

i.  8% of the amount by which the amount that would be determined in respect of the corporation for the year under section 771.2.1.2 if no reference were made to section 771.2.5.1 and, for the purposes of paragraph b of section 771.2.1.2, its taxable income for the year were computed without reference to section 737.18.17.5, exceeds the amount that would be determined in its respect for the year under section 771.2.1.2 if the corporation were to deduct, in computing its taxable income, the amount that, but for this section, would be determined under section 737.18.17.5, and

ii.  the product obtained by multiplying the basic rate determined for the year in respect of the corporation under section 771.0.2.3.1 by the amount by which the amount that could be deducted in computing the corporation’s taxable income for the year under section 737.18.17.5 if no reference were made to this section exceeds the excess amount determined under subparagraph i; and

(e)  E is

i.  in the case of a large investment project of the corporation, the proportion that the amount that A would be in the formula in subparagraph a of the first paragraph of section 737.18.17.5, for the taxation year, in respect of the corporation, if the corporation’s income referred to in subparagraph a of the second paragraph of that section were derived only from its eligible activities, in relation to the large investment project, is of the total of the amount that A is in that formula for the year, in respect of the corporation, and the aggregate of all amounts each of which is the corporation’s share of the amount that D is in the formula in subparagraph b of that first paragraph for the fiscal period of a partnership of which the corporation is a member that ends in the year, or

ii.  in the case of a large investment project of a partnership of which the corporation is a member, the proportion that the corporation’s share of the amount that D would be in the formula in subparagraph b of the first paragraph of section 737.18.17.5, for the fiscal period of the partnership that ends in the taxation year, if the partnership’s income referred to in subparagraph d of the second paragraph of that section were derived only from its eligible activities, in relation to the large investment project, is of the total of the amount that A is in the formula in subparagraph a of that first paragraph for the year, in respect of the corporation, and the aggregate of all amounts each of which is the corporation’s share of the amount that D is for the fiscal period of a partnership of which the corporation is a member that ends in the year.

For the purpose of determining the amount referred to in subparagraph i of subparagraph a of the third paragraph or in subparagraph b of that paragraph for any preceding taxation year for which section 733.0.5.1 applies to the corporation, subparagraph b of the fifth paragraph is to be read as if

(a)  the amount that is deducted by the corporation in computing its taxable income for the year under section 737.18.17.5 were increased by the amount by which its non-capital loss for the year exceeds the amount that would be that loss if it were determined without reference to section 733.0.5.1; and

(b)  the corporation’s taxable income for the year, determined without reference to section 737.18.17.5, were equal to the amount that, but for this section, would be determined in its respect for the year under section 737.18.17.5.

For the purposes of subparagraph e of the fifth paragraph, the corporation’s share of an amount for a partnership’s fiscal period is equal to the agreed proportion of that amount in respect of the corporation for the partnership’s fiscal period.

2015, c. 21, s. 260; 2017, c. 1, s. 182.

2015-10-21

737.18.17.6. The amount to which the first paragraph of section 737.18.17.5 refers in respect of a corporation for a taxation year is equal, subject to subparagraph a of the first paragraph of section 737.18.17.7, to the aggregate of the following amounts that is multiplied, if the corporation has an establishment situated outside Québec, by the reciprocal of the proportion that its business carried on in Québec is of the aggregate of its business carried on in Canada or in Québec and elsewhere, as determined under subsection 2 of section 771:

(a)  100/11.9 of the lesser of the aggregate of all amounts each of which is the corporation’s tax exemption amount for the year in respect of a large investment project of the corporation, or of a partnership of which it is a member, that is referred to in the first paragraph of section 737.18.17.5 and the amount that is determined in its respect for the year under subparagraph ii of subparagraph d of the fifth paragraph; and

(b)  100/8 of the amount by which the aggregate of all amounts each of which is the corporation’s tax exemption amount for the year in respect of a large investment project of the corporation, or of a partnership of which it is a member, that is referred to in the first paragraph of section 737.18.17.5 exceeds the amount that is determined in its respect for the year under subparagraph ii of subparagraph d of the fifth paragraph.

For the purposes of this section, a corporation’s tax exemption amount for a taxation year in respect of a large investment project of the corporation, or of a partnership of which it is a member, is equal to the lesser of the amount that is determined under the fourth paragraph, for the year, in relation to the large investment project and the balance of the corporation’s tax assistance limit for the year in respect of the project.

The balance of a corporation’s tax assistance limit, for a particular taxation year, in respect of a large investment project, is equal to

(a)  in the case of a large investment project of the corporation, the amount by which the corporation’s tax assistance limit, in relation to the project, determined in accordance with section 737.18.17.8, exceeds the aggregate of

i.  the aggregate of all amounts each of which is, for a preceding taxation year, in relation to the large investment project, equal to the amount determined by the formula

A × B × C,

ii.  the aggregate of all amounts each of which is the corporation’s contribution exemption amount, for the particular taxation year or a preceding taxation year, in respect of the large investment project, determined in accordance with the second paragraph of section 34.1.0.3 of the Act respecting the Régie de l’assurance maladie du Québec (chapter R-5), and

iii.  where, at any time in the particular taxation year, the corporation transfers its recognized business in relation to the large investment project to another corporation or a partnership, the amount that was transferred to the other corporation or the partnership pursuant to the agreement referred to in section 737.18.17.12 in respect of the transfer; or

(b)  in the case of a large investment project of a partnership of which the corporation is a member, the amount by which the corporation’s tax assistance limit for the particular year, in relation to the large investment project, determined in accordance with section 737.18.17.9 exceeds the aggregate of all amounts each of which is, for a preceding taxation year, in relation to the project, equal to the amount determined by the formula

A × B × C.

The amount to which the second paragraph refers, for a taxation year of the corporation, in relation to a large investment project, is determined by the formula

A × D × E.

In the formulas in the third and fourth paragraphs,

(a)  A is 1, unless the corporation has an establishment situated outside Québec for the taxation year, in which case it is the proportion that the corporation’s business carried on in Québec is of the aggregate of its business carried on in Canada or in Québec and elsewhere, as determined under subsection 2 of section 771 for the year;

(b)  B is the aggregate of, subject to subparagraph b of the first paragraph of section 737.18.17.7,

i.  8% of the amount by which the amount that would be determined in respect of the corporation for the year under section 771.2.1.2 if no reference were made to section 771.2.5.1 and, for the purposes of paragraph b of section 771.2.1.2, its taxable income for the year were computed without reference to section 737.18.17.5, exceeds the amount determined in its respect for the year under section 771.2.1.2, and

ii.  11.9% of the amount by which the amount that is deducted by the corporation in computing its taxable income for the year under section 737.18.17.5 exceeds the excess amount determined under subparagraph i;

(c)  C is the proportion that the corporation’s tax exemption amount for the year in respect of the large investment project is of the aggregate of all amounts each of which is the corporation’s tax exemption amount for the year in respect of a large investment project of the corporation, or of a partnership of which it is a member, that is referred to in the first paragraph of section 737.18.17.5 for the year;

(d)  D is the aggregate of, subject to subparagraph b of the first paragraph of section 737.18.17.7,

i.  8% of the amount by which the amount that would be determined in respect of the corporation for the year under section 771.2.1.2 if no reference were made to section 771.2.5.1 and, for the purposes of paragraph b of section 771.2.1.2, its taxable income for the year were computed without reference to section 737.18.17.5, exceeds the amount that would be determined in its respect for the year under section 771.2.1.2 if the corporation were to deduct, in computing its taxable income, the amount that, but for this section, would be determined under section 737.18.17.5, and

ii.  11.9% of the amount by which the amount that could be deducted in computing the corporation’s taxable income for the year under section 737.18.17.5 if no reference were made to this section exceeds the excess amount determined under subparagraph i; and

(e)  E is

i.  in the case of a large investment project of the corporation, the proportion that the amount that A would be in the formula in subparagraph a of the first paragraph of section 737.18.17.5, for the taxation year, in respect of the corporation, if the corporation’s income referred to in subparagraph a of the second paragraph of that section were derived only from its eligible activities, in relation to the large investment project, is of the total of the amount that A is in that formula for the year, in respect of the corporation, and the aggregate of all amounts each of which is the corporation’s share of the amount that D is in the formula in subparagraph b of that first paragraph for the fiscal period of a partnership of which the corporation is a member that ends in the year, or

ii.  in the case of a large investment project of a partnership of which the corporation is a member, the proportion that the corporation’s share of the amount that D would be in the formula in subparagraph b of the first paragraph of section 737.18.17.5, for the fiscal period of the partnership that ends in the taxation year, if the partnership’s income referred to in subparagraph d of the second paragraph of that section were derived only from its eligible activities, in relation to the large investment project, is of the total of the amount that A is in the formula in subparagraph a of that first paragraph for the year, in respect of the corporation, and the aggregate of all amounts each of which is the corporation’s share of the amount that D is for the fiscal period of a partnership of which the corporation is a member that ends in the year.

For the purpose of determining the amount referred to in subparagraph i of subparagraph a of the third paragraph or in subparagraph b of that paragraph for any preceding taxation year for which section 733.0.5.1 applies to the corporation, subparagraph b of the fifth paragraph is to be read as if

(a)  the amount that is deducted by the corporation in computing its taxable income for the year under section 737.18.17.5 were increased by the amount by which its non-capital loss for the year exceeds the amount that would be that loss if it were determined without reference to section 733.0.5.1; and

(b)  the corporation’s taxable income for the year, determined without reference to section 737.18.17.5, were equal to the amount that, but for this section, would be determined in its respect for the year under section 737.18.17.5.

For the purposes of subparagraph e of the fifth paragraph, the corporation’s share of an amount for a partnership’s fiscal period is equal to the agreed proportion of that amount in respect of the corporation for the partnership’s fiscal period.

2015, c. 21, s. 260.